India is preparing to issue its first tokenized corporate bond as early as September 2026, as part of a pilot project overseen by market regulator SEBI. The test will use distributed ledger technology to experiment with faster settlements and automated coupon payments, integrated with the central bank’s digital currency, the e-rupee. India’s corporate bond market now exceeds 60 trillion rupees in outstanding volume, with FY26 issuances reaching approximately 9.11 trillion rupees. The project aims to reduce the current two-day (T+2) settlement cycle to near real-time execution, lowering counterparty risk and collateral requirements. The six-to-nine-month pilot builds on existing infrastructure from India’s central securities depositories NSDL and CDSL.
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